HF 3464

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; creating a small business 
  1.3             category under the Money Transmitter Act; modifying 
  1.4             regulations; amending Minnesota Statutes 2001 
  1.5             Supplement, sections 53B.05, subdivision 1; 53B.08, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   53B.05, subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [NET WORTH.] Each licensee engaging in 
  1.11  money transmission at six or fewer locations in the state, 
  1.12  either directly or through authorized delegates, must have a net 
  1.13  worth of at least $50,000.  Each licensee under this chapter 
  1.14  shall at all times have a net worth of not less than $100,000, 
  1.15  calculated in accordance with generally accepted accounting 
  1.16  principles.  Licensees engaging in money transmission at more 
  1.17  than one location six locations in the state, either directly or 
  1.18  through authorized delegates, shall have an additional a net 
  1.19  worth of $100,000 and an additional net worth of $50,000 per for 
  1.20  each location or authorized delegate located in the state in 
  1.21  excess of seven, as applicable, to a maximum of $500,000.  Net 
  1.22  worth shall be calculated in accordance with generally accepted 
  1.23  accounting principles. 
  1.24     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  1.25  53B.08, subdivision 1, is amended to read: 
  1.26     Subdivision 1.  [REQUIREMENT.] Each application must be 
  2.1   accompanied by a surety bond, irrevocable letter of credit, or 
  2.2   other similar security device acceptable to the commissioner in 
  2.3   the amount of $50,000 $25,000.  If the applicant proposes to 
  2.4   engage in business under this chapter at more than one location 
  2.5   three locations, but less than seven locations, through 
  2.6   authorized delegates or otherwise, then the amount of the 
  2.7   security device must be increased by $10,000 per location, up to 
  2.8   a maximum of $250,000 to $50,000.  If the applicant proposes to 
  2.9   engage in business under this chapter at more than six 
  2.10  locations, through authorized delegates or otherwise, then the 
  2.11  amount of the security device must be increased by $50,000 for 
  2.12  each location over six, up to a maximum of $250,000.  The 
  2.13  security device must be in a form satisfactory to the 
  2.14  commissioner and must run to the state for the benefit of any 
  2.15  claimants against the licensee to secure the faithful 
  2.16  performance of the obligations of the licensee with respect to 
  2.17  the receipt, handling, transmission, and payment of money in 
  2.18  connection with the sale and issuance of payment instruments or 
  2.19  transmission of money.  In the case of a bond, the aggregate 
  2.20  liability of the surety in no event shall exceed the principal 
  2.21  sum of the bond.  Claimants against the licensee may themselves 
  2.22  bring suit directly on the security device or the commissioner 
  2.23  may bring suit on behalf of these claimants, either in one 
  2.24  action or in successive actions. 
  2.25     Sec. 3.  [EFFECTIVE DATE.] 
  2.26     This act is effective the day following final enactment.